Germany is facing a social crisis. The costs of pensions, care, and health care are skyrocketing, while citizen’s income is straining the state coffers. Federal Chancellor Friedrich Merz (69, CDU) is sounding the alarm: “The welfare state as we know it today can no longer be financed with what we can afford economically.” But how should the government solve the problem? Experts have clear demands.

Care: Who pays the bill?

An aging society is pushing the care system to its limits. Renowned economist Prof. Bernd Raffelhüschen (67) proposes introducing waiting periods. “People would have to pay for half a year or a year themselves,” he explains to Bild. It’s a radical proposal that would affect many citizens, but according to Raffelhüschen, it is necessary to stabilize the system.

Health: Co-payments for everyone?

Raffelhüschen also sees a need for action in the healthcare system. He is calling for a base amount that everyone must pay themselves – around 500 to 800 euros per year. “That would strengthen personal responsibility,” says the expert. The Confederation of German Employers’ Associations is also calling for the return of the practice fee. This is a step that is likely to meet with resistance from many patients.

Pensions: The end of early retirement?

The pension funds are empty. In 2025 alone, the federal government had to contribute 121 billion euros. Economist Prof. Veronika Grimm (53) is calling for drastic reforms: “The retirement age must be linked to life expectancy. Retirement at 63 should be abolished.” The 48 percent stop line and the mother’s pension are also on her list of cuts. This is a tough course of action that would primarily affect older workers.

Citizen’s income: Work instead of welfare?

Citizen’s income costs the state 42.6 billion euros a year. For Raffelhüschen, one thing is clear: “The incentives are on welfare, not on work.” He calls for citizen’s income to be converted into benefits in kind and tougher sanctions for those who are able to work but do not. Prof. Veronika Grimm also sees a need for action: “More people, for example from Ukraine, need to be brought into employment. Otherwise, social service obligations will be necessary.”

Merz under pressure: reforms or stagnation?

The experts’ proposals are clear, but implementation is in the hands of politicians. Chancellor Merz faces a mammoth task, as the SPD, as a coalition partner, is likely to block many reforms. “None of the additional debt we are taking on will be invested; instead, it will all be put into the social welfare systems,” warns Grimm. Time is pressing, but the political fronts are hardened.

Credits: APA